Income tax slabs for FY 2026-27 (AY 2027-28)
Under the new tax regime for FY 2026-27, income up to ₹4 lakh is not taxed at all, rates then climb in ₹4 lakh steps from 5% to 30%, and the top rate of 30% applies above ₹24 lakh. Because the section 87A rebate is worth up to ₹60,000, a salaried person earning up to ₹12.75 lakh pays no income tax once the ₹75,000 standard deduction is applied. Budget 2026 left the slabs, the Rs 75,000 standard deduction and the Rs 12 lakh rebate untouched.
New tax regime slab rates
The default regime. Standard deduction of ₹75,000, and almost no other deductions.
| Taxable income | Tax rate |
|---|---|
| ₹0 to ₹4 L | 0% |
| ₹4 L to ₹8 L | 5% |
| ₹8 L to ₹12 L | 10% |
| ₹12 L to ₹16 L | 15% |
| ₹16 L to ₹20 L | 20% |
| ₹20 L to ₹24 L | 25% |
| Above ₹24 L | 30% |
Old tax regime slab rates
Higher rates, but HRA, 80C, 80D, home loan interest and the rest remain claimable. Standard deduction is ₹50,000.
| Taxable income | Tax rate |
|---|---|
| ₹0 to ₹2.5 L | 0% |
| ₹2.5 L to ₹5 L | 5% |
| ₹5 L to ₹10 L | 20% |
| Above ₹10 L | 30% |
Senior citizens (old regime only)
The exemption limit rises with age. The new regime makes no such distinction.
| Age group | Exempt up to |
|---|---|
| Below 60 | ₹2,50,000 |
| 60 to 79 (senior citizen) | ₹3,00,000 |
| 80 and above (super senior) | ₹5,00,000 |
Surcharge on high incomes
Surcharge is charged on the tax itself, not on income. Marginal relief means crossing a threshold never costs more in extra tax than the extra income that crossed it.
| Total income | New regime | Old regime |
|---|---|---|
| Above ₹50 lakh | 10% | 10% |
| Above ₹1 crore | 15% | 15% |
| Above ₹2 crore | 25% | 25% |
| Above ₹5 crore | 25% (capped) | 37% |
Health and education cess
A flat 4% is added to the tax after any rebate, surcharge and marginal relief. It applies to both regimes, at every income level.
Slabs for earlier years
Filing a return for a previous year, or checking what changed:
FY 2025-26 (AY 2026-27), new regime
Budget 2025 widened the slabs and raised the 87A rebate so income up to Rs 12 lakh pays no tax.
| Taxable income | Tax rate |
|---|---|
| ₹0 to ₹4 L | 0% |
| ₹4 L to ₹8 L | 5% |
| ₹8 L to ₹12 L | 10% |
| ₹12 L to ₹16 L | 15% |
| ₹16 L to ₹20 L | 20% |
| ₹20 L to ₹24 L | 25% |
| Above ₹24 L | 30% |
FY 2024-25 (AY 2025-26), new regime
The older six-slab structure with a Rs 7 lakh rebate ceiling.
| Taxable income | Tax rate |
|---|---|
| ₹0 to ₹3 L | 0% |
| ₹3 L to ₹7 L | 5% |
| ₹7 L to ₹10 L | 10% |
| ₹10 L to ₹12 L | 15% |
| ₹12 L to ₹15 L | 20% |
| Above ₹15 L | 30% |
Rules reviewed 20 August 2026. This is a reference summary, not tax advice.